HTX Exits UK Market Following FCA Settlement Amid Legal Dispute
HTX, a crypto exchange linked to Justin Sun, has agreed to withdraw from the UK market following a settlement with the Financial Conduct Authority (FCA). This decision concludes a legal dispute initiated by the FCA in October 2025, which accused HTX of unlawfully promoting crypto-asset services to UK consumers and allowing unauthorized trading.
As part of the settlement, HTX has committed to not targeting or soliciting UK customers. The exchange has also implemented measures to comply with financial promotion regulations. Consequently, UK users can no longer register from UK IP addresses, and existing customers are prohibited from trading. They have been given 48 hours to withdraw their assets before their accounts are closed.
This case marks the FCA's first lawsuit against a crypto company under its financial promotion framework. The regulator faced challenges in identifying the ownership and control of HTX, which is owned by Panama-based Huobi Global and has ties to Justin Sun.
Looking ahead, the FCA is set to introduce a comprehensive authorization framework for the UK crypto industry by October 25, 2027. This framework will expand regulatory oversight beyond anti-money-laundering and financial promotion requirements to include stablecoin issuers, crypto custodians, trading platforms, brokers, transaction intermediaries, and staking arrangers. Firms must apply for authorization by February 28, 2027, within a designated application window, to continue operations legally.
Updated 14:01 UTC
Latest Developments on HTX's Exit from the UK Market
- HTX has officially agreed to exit the UK market following a settlement with the Financial Conduct Authority (FCA), marking the regulator's first enforcement case against a crypto firm regarding financial promotions.
- The settlement concludes a High Court action that commenced in October 2025.
- Huobi Global S.A., the company behind the HTX brand, has committed to not communicating any financial promotions that violate UK law across its platforms.
- The FCA has confirmed that HTX is no longer operational in the UK, prohibiting UK customers from depositing funds and preventing new user registrations.
- Existing UK customers have a 48-hour window to withdraw their assets before their accounts are closed.
- Steve Smart, FCA's executive director, emphasized that overseas firms are still subject to UK law, warning other crypto firms to comply with regulations or face similar consequences.
- HTX claims to have implemented measures to comply with UK financial promotion regulations, although the details of the settlement remain confidential.
- In May, the UK government sanctioned Huobi Global for its alleged support of Russia's financial sector, and in July, the EU included Huobi Global in its sanctions package against Russia.
- Recent reports indicate that around 12,000 transfers linked to HTX were involved in a compliance-related incident affecting Kraken clients.
FAQ
Why is HTX exiting the UK market?
HTX is exiting the UK market following a settlement with the Financial Conduct Authority (FCA) due to accusations of unlawfully promoting crypto-asset services to UK consumers and allowing unauthorized trading.
What measures has HTX taken as part of the FCA settlement?
As part of the settlement, HTX has committed to not targeting or soliciting UK customers and has implemented measures to comply with financial promotion regulations.
What should existing UK customers of HTX do now?
Existing UK customers are prohibited from trading and have been given 48 hours to withdraw their assets before their accounts are closed.
What is the significance of this case for the FCA?
This case marks the FCA's first lawsuit against a crypto company under its financial promotion framework, highlighting the regulator's increasing scrutiny of the crypto industry.
What upcoming regulatory changes are expected for the UK crypto industry?
The FCA is set to introduce a comprehensive authorization framework for the UK crypto industry by October 25, 2027, which will expand regulatory oversight to include various crypto-related firms and services.
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